- VAT rate increase from 15% to 15.5% effective 1 May 2025
- Parliament approved the Fiscal Framework and related Bill
- Unlikely any legislation will reverse the increase before 30 April 2025
- VAT Act allows Minister to announce rate changes effective from a specified date
- Parliament must pass legislation within 12 months to formalize the change
- Public debate and lack of consensus create uncertainty about potential delay or reversal
- High Court interdict is the only potential delay to the rate change
- Uncertainty if Parliament fails to pass legislation within 12 months
- Vendors advised to prepare for the rate increase
- Implementation involves significant compliance costs for vendors
- Changes required in accounting systems, invoices, contracts, and pricing systems
Source: ensafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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